Airtel Files Plea in SC over AGR Dues after Vodafone Idea’s Plea
The ongoing Adjusted Gross Revenue (AGR) dues case in India has taken another turn with Bharti Airtel and Bharti Hexacom filing a petition in the Supreme Court seeking relief. This development comes on the heels of Vodafone Idea, another major telecom operator, filing a similar plea earlier. The petition seeks a waiver of a massive ₹34,745 crore, citing a principal liability of ₹9,235 crore that has ballooned to ₹43,980 crore due to interest and penalties.
The AGR dues controversy has been a contentious issue in the Indian telecom sector for quite some time now. The Department of Telecommunications (DoT) had demanded a massive sum of ₹92,000 crore from the three major telecom operators – Bharti Airtel, Vodafone Idea, and Reliance Jio – as AGR dues. However, the operators have been contesting the demand, arguing that the calculation of the dues is incorrect and that they have already paid a significant amount.
The AGR dues case has been ongoing in the Supreme Court since 2019, with the court issuing several orders and directions to the telecom operators and the DoT. However, the issue has remained unresolved, with the operators seeking a waiver of the dues or a reduction in the amount. The latest move by Bharti Airtel and Bharti Hexacom is a significant development in this regard, as it seeks to address the issue of interest and penalties that have been added to the principal liability.
According to the petition filed by Bharti Airtel and Bharti Hexacom, the principal liability of ₹9,235 crore has been subjected to interest and penalties, resulting in a total liability of ₹43,980 crore. The petition argues that the addition of interest and penalties is unfair and that the operators should not be burdened with such a huge amount. The petition also seeks a waiver of the interest and penalties, citing the financial difficulties faced by the operators due to the pandemic and other factors.
The petition is likely to be heard by the Supreme Court along with the similar plea filed by Vodafone Idea. The court has already heard the case of Vodafone Idea, which had sought a waiver of ₹53,038 crore as AGR dues. The court had directed the DoT to provide a detailed calculation of the AGR dues, which has led to the current controversy.
The AGR dues case has significant implications for the Indian telecom sector, as it could impact the financial health of the operators and the overall competition in the market. The operators have been facing financial challenges due to the high tariffs, intense competition, and the impact of the pandemic. A waiver or reduction of the AGR dues could provide some relief to the operators, enabling them to invest more in their networks and services.
In conclusion, the filing of the petition by Bharti Airtel and Bharti Hexacom is a significant development in the AGR dues case. The petition seeks a waiver of the interest and penalties added to the principal liability, citing the financial difficulties faced by the operators. The outcome of the petition could have significant implications for the Indian telecom sector, and it is likely to be a closely watched development in the coming days.
